INTELLECTUAL
PROPERTY SECURITY AGREEMENT


          This
Intellectual Property Security Agreement is entered into as of February 4, 2004
by and between SILICON VALLEY BANK (“Secured Party”) and Maxwell Technologies,
Inc. (“Grantor”).


RECITALS

          A.          Secured
Party and Grantor are entering into that certain Loan and Security Agreement by
dated of even date herewith (as the same may be amended, modified or
supplemented from time to time, the “Loan Agreement”; capitalized terms used
herein which are not defined, have the meanings set forth in the Loan
Agreement).

          B.          Pursuant
to the terms of the Loan Agreement, Grantor has granted to Secured Party a
security interest in all of Grantor’s right, title and interest, whether
presently existing or hereafter acquired, in, to all Intellectual Property and
all other Collateral.

          NOW,
THEREFORE, as collateral security for the payment and performance when due of
all of the Obligations, Grantor hereby grants, represents, warrants, covenants
and agrees as follows:

AGREEMENT

          1.          Grant
of Security Interest.  To secure all
of the Obligations, Grantor grants and pledges to Secured Party a security
interest in all of Grantor’s right, title and interest in, to and under its
Intellectual Property (as defined in the Loan Agreement), including without
limitation the following:

                       (a)     All
of present and future United States registered copyrights and copyright registrations,
including, without limitation, the registered copyrights, maskworks, software,
computer programs and other works of authorship subject to United States
copyright protection listed in Exhibit A-1 to this Agreement (and
including all of the exclusive rights afforded a copyright registrant in the
United States under 17 U.S.C. §106 and any exclusive rights which may in the
future arise by act of Congress or otherwise) and all present and future
applications for copyright registrations (including applications for copyright
registrations of derivative works and compilations) (collectively, the
“Registered Copyrights”), and any and all royalties, payments, and other
amounts payable to Grantor in connection with the Registered Copyrights,
together with all renewals and extensions of the Registered Copyrights, the
right to recover for all past, present, and future infringements of the
Registered Copyrights, and all computer programs, computer databases, computer
program flow diagrams, source codes, object codes and all tangible property
embodying or incorporating the Registered Copyrights, and all other rights of
every kind whatsoever accruing thereunder or pertaining thereto.

                       (b)     All
present and future copyrights, maskworks, software, computer programs and other
works of authorship subject to (or capable of becoming subject to) United
States copyright protection which are not registered in the United States
Copyright Office (the “Unregistered Copyrights”), whether now owned or
hereafter acquired, including without 








limitation the
Unregistered Copyrights listed in Exhibit A-2 to this Agreement, and any
and all royalties, payments, and other amounts payable to Grantor in connection
with the Unregistered Copyrights, together with all renewals and extensions of
the Unregistered Copyrights, the right to recover for all past, present, and
future infringements of the Unregistered Copyrights, and all computer programs,
computer databases, computer program flow diagrams, source codes, object codes
and all tangible property embodying or incorporating the Unregistered
Copyrights, and all other rights of every kind whatsoever accruing thereunder
or pertaining thereto.  The Registered
Copyrights and the Unregistered Copyrights collectively are referred to herein
as the “Copyrights.”

                       (c)     All
right, title and interest in and to any and all present and future license
agreements with respect to the Copyrights.

                       (d)     All
present and future accounts, accounts receivable, royalties, and other rights
to payment arising from, in connection with or relating to the Copyrights.

                       (e)     All
patents, patent applications and like protections including, without limitation,
improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same, including without limitation the patents and
patent applications set forth on Exhibit B attached hereto
(collectively, the “Patents”);

                       (f)     All
trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire
goodwill of the business of Grantor connected with and symbolized by such
trademarks, including without limitation those set forth on Exhibit C
attached hereto (collectively, the “Trademarks”);

                       (g)     Any
and all claims for damages by way of past, present and future infringements of any
of the rights included above, with the right, but not the obligation, to sue
for and collect such damages for said use or infringement of the rights
identified above;

                       (h)     All
licenses or other rights to use any of the Copyrights, Patents or Trademarks, and
all license fees and royalties arising from such use to the extent permitted by
such license or rights;

                       (i)     All
amendments, extensions, renewals and extensions of any of the Copyrights, Trademarks
or Patents; and

                       
(j)     All proceeds and products of the foregoing,
including without limitation all payments under insurance or any indemnity or
warranty payable in respect of any of the foregoing, and all license royalties
and proceeds of infringement suits, and all rights corresponding to the
foregoing throughout the world and all re-issues, divisions continuations,
renewals, extensions and continuations-in-part of the foregoing.

          2.          Loan
Agreement.  This security interest
is granted in conjunction with the security interest granted to Secured Party
under the Loan Agreement.  The rights
and remedies of Secured Party with respect to the security interest granted
hereby are in addition to those set forth in the Loan Agreement and the other
Loan Documents, and those which are now or hereafter available to Secured Party
as a matter of law or equity.  Each
right, power and remedy of Secured Party 

2








provided for herein or in
the Loan Agreement or any of the other Loan Documents, or now or hereafter
existing at law or in equity shall be cumulative and concurrent and shall be in
addition to every right, power or remedy provided for herein and the exercise
by Secured Party of any one or more of the rights, powers or remedies provided
for in this Agreement, the Loan Agreement or any of the other Loan Documents,
or now or hereafter existing at law or in equity, shall not preclude the
simultaneous or later exercise by any person, including Secured Party, of any
or all other rights, powers or remedies.

          3.          Covenants
and Warranties.  Grantor represents,
warrants, covenants and agrees as follows:

                       (a)     Grantor
has no present maskworks, software, computer programs and other works of authorship
registered with the United States Copyright Office except as disclosed on Exhibit
A-1 hereto.

                       (b)     Grantor
shall undertake all reasonable measures to cause its employees, agents and independent
contractors to assign to Grantor all rights of authorship to any copyrighted
material in which Grantor has or may subsequently acquire any right or
interest.

                       (c)     Grantor
shall promptly advise Secured Party of any Trademark, Patent or Copyright not
specified in this Agreement, which is hereafter acquired by Grantor.

                       (d)     Grantor
shall not register any maskworks, software, computer programs or other works of
authorship subject to United States copyright protection with the United States
Copyright Office without first complying with the following: (i) providing
Secured Party with written notice thereof simultaneously with the filing of
such application for registration, (ii) providing Secured Party with a
copy of the application for any such registration and (iii) executing and
filing such other instruments, and taking such further actions as Secured Party
may reasonably request from time to time to perfect or continue the perfection
of Secured Party’s interest in the Collateral, including without limitation the
filing with the United States Copyright Office, simultaneously with the filing
by Grantor of the application for any such registration, of a copy of this
Agreement or a Supplement hereto in form acceptable to Secured Party
identifying the maskworks, software, computer programs or other works of
authorship being registered and confirming the grant of a security interest
therein in favor of Secured Party.

          4.          General.  If any action relating to this Agreement is
brought by either party hereto against the other party, the prevailing party
shall be entitled to recover reasonable attorneys fees, costs and
disbursements.  This Agreement may be
amended only by a written instrument signed by both parties hereto.  To the extent that any provision of this
Agreement conflicts with any provision of the Loan Agreement, the provision
giving Secured Party greater rights or remedies shall govern, it being
understood that the purpose of this Agreement is to add to, and not detract
from, the rights granted to Secured Party under the Loan Agreement.  This Agreement, the Loan Agreement, and the
other Loan Documents comprise the entire agreement of the parties with respect
to the matters addressed in this Agreement. 
This Agreement shall be governed by the laws of the State of California,
without regard for choice of law provisions. 
Grantor and Secured Party consent to the nonexclusive jurisdiction of
any state or federal court located in Santa Clara County, California.

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          5.          WAIVER OF
RIGHT TO JURY TRIAL.  SECURED
PARTY AND GRANTOR EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO: (I) THIS
AGREEMENT; OR (II) ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN
SECURED PARTY AND GRANTOR; OR (III) ANY CONDUCT, ACTS OR OMISSIONS OF SECURED
PARTY OR GRANTOR OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS,
ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH SECURED PARTY OR GRANTOR; IN
EACH OF THE FOREGOING CASES, WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.

          IN
WITNESS WHEREOF, the parties have cause this Intellectual Property Security
Agreement to be duly executed by its officers thereunto duly authorized as of
the first date written above.

	
  Address of Grantor:
	
  Grantor:
	
   

	
   
	
   
	
   

	
  9244 Balboa Avenue
	
  Maxwell Technologies, Inc.
	
   

	
  SanDiego,CA 92123
	
   
	
   

	
   
	
   
	
   

	
   
	
  By:
	
   

	
   
	
   
	
  



  	
   

	
   
	
  Title:
	
   

	
   
	
   
	
  



  	
   

	
   
	
  Name:
	
   

	
   
	
   
	
  



  	
   

	
   
	
   
	
   

	
  Address of Secured Party:
	
  Secured Party:
	
   

	
   
	
   
	
   

	
  3003 Tasman Drive
	
  SILICON VALLEY BANK
	
   

	
  Santa Clara, California 95054
	
   
	
   

	
   
	
   
	
   

	
   
	
  By:
	
   

	
   
	
   
	
  



  	
   

	
   
	
  Title:
	
   

	
   
	
   
	
  



  	
   

	
   
	
   
	
   

								



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EXHIBIT A-1


REGISTERED
COPYRIGHTS

(including copyrights that are the subject of an application for registration)


	
  Description

  	
   
	
  Registration/

  Application

  Number
	
   
	
  Registration/

  Application

  Date

	
   
	
   
	
  



  	
   
	
  



  
	
  NONE
	
   
	
   
	
   
	
   












EXHIBIT A-2

UNREGISTERED
COPYRIGHTS

NONE

 

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EXHIBIT B

PATENTS

	
  Description

  	
   
	
  Registration/

  Application

  Number
	
   
	
  Registration/

  Application

  Date

	
  



  	
   
	
  



  	
   
	
  



  
	
  See Attached Patent Listing
	
   
	
   
	
   
	
   




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EXHIBIT C

TRADEMARKS

	
  Description
	
   
	
  Registration/

  Application

  Number
	
   
	
  Registration/

  Application

  Date

	
   
	
   
	
  



  	
   
	
  



  



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Confirmation re
Closing Documents


February 4, 2004

To:     Silicon
Valley Bank 

Ladies and Gentlemen:

          Concurrently,
we are signing and submitting to you a Loan and Security Agreement (the “Loan
Agreement”), and we and our affiliates are signing and submitting to you other
related documents and agreements (with the Loan Agreement, collectively, the
“Loan Documents”).

          In
order to save time in the closing process, your attorneys sent the signature
copies of the Loan Documents to us by email, and we then printed them and had
them signed.

          This
will confirm that we have not made any changes in any of the Loan Documents and
that they were signed as they were submitted to us.

Sincerely,

	
   
	
  Maxwell Technologies, Inc.
	
   

	
   
	
   
	
   

	
   
	
  By
	
   

	
   
	
   
	
  



  	
   

	
   
	
  Name
	
   

	
   
	
   
	
  



  	
   

	
   
	
  Title
	
   

	
   
	
   
	
  



  	
   

						



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